SIB general assembly approves a 15% dividend for 2022

The SIB achieved a record net profit of Dh651 million, an increase of 27%; Total assets increased by 7.6% to reach AED 59.1 billion

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A Staff Reporter

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Abdul Rahman Al Owais, chairman of the board of directors of SIB, chaired the bank’s annual meeting at the Sharjah Chamber of Commerce and Industry. — Supplied photo
Abdul Rahman Al Owais, chairman of the board of directors of SIB, chaired the bank’s annual meeting at the Sharjah Chamber of Commerce and Industry. — Supplied photo

Published: Tue 28 Feb 2023, 3:52 PM

Sharjah Islamic Bank (SIB) has approved 15 per cent dividend for its shareholders as the bank recorded 27 per cent year-on-year growth in its annual profit to Dh651 million last year.

Abdul Rahman Al Owais, chairman of the board of directors of SIB, chaired the bank’s annual meeting at the Sharjah Chamber of Commerce and Industry on Sunday and approved the dividend for shareholders.

The meeting was attended by members of the board of directors and executive management of SIB, representatives of the Securities and Commodities Authority, Sharjah Economic Development Department, and shareholders.

The meeting’s decisions included the assembly’s approval of the board of directors’ report on the SIB’s activity and its financial position for the past year, the approval of the consolidated financial statements for the fiscal year ending on December 31, 2022, and the approval of the auditors’ report and the Internal Shariah Control Committee report for the same fiscal year.

"The SIB successfully achieved record profits in 2022, thanks to its adoption of a flexible strategy to meet the challenges of the continuous rise in global interest and inflation rates,” Al Owais said.

Expanding digital services

He stressed that SIB endeavours to continue its efforts in translating and implementing the aspirations of wise leadership in building a competitive, knowledge-based, and digital economy based on innovation and risk management.

In addition, the bank will expand the range of digital services provided to beneficiaries to support the level of effectiveness, flexibility and security in the financial system following global best practices and experiences for future generations.

The growth in net profits reflects the bank's strong performance, as net revenues from financing and investment products increased by 10.9 per cent, equivalent to an increase of Dh119.1 million to reach Dh1.2 billion for this year compared to Dh1.1 billion from the previous year. Net fees, commissions, and other revenues increased by 18.8 per cent to reach Dh395.8 million compared to Dh333.2 million for the previous year.

In continuation of the bank's hedging policy to face the challenges faced by the global economy, it continued to enhance provisions, as net impairment provisions amounted to Dh313.8 million compared to Dh244.5 million from the previous year, reflecting an increase of Dh69.2 million.

Strong liquidity

The SIB maintained strong liquidity and financial position, reaching Dh14.1 billion at a rate of 23.9 per cnt of total assets. The total assets grew by 7.6 per cent on the balance sheet, reaching Dh59.1 billion.

The financing portfolio increased by 5.7 per cent, reaching an amount of Dh30.7 billion, as well the bank was able to attract a larger volume of customer deposits during the year, with deposits increasing by 2.7 per cent to reach a total of Dh39.5 billion compared to Dh38.5 billion by the end of 2021.

Sharjah Islamic Bank enjoys a strong capital base, with total shareholders' equity amounting to Dh7.6 billion, which represents 12.9 per cent of the bank's total assets. Consequently, according to (Basel III) standards, the capital adequacy ratio has stabilized at 19.1 per cent.

— muzaffarrizvi@khaleejtimes.com


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